Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
Elements Elements describe the essential outcomes. | Performance Criteria Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold and italicised text is used, further information is detailed in the range of conditions section. |
1. Determine fixed costs | 1.1 Fixed cost components are identified and classified into categories 1.2 Past records and business requirements are used to estimate fixed costs for next period 1.3 Fixed administrative and business operation overhead costs are calculated 1.4 Proportion of fixed costs to be included in retail rates is determined |
2. Determine labour rate | 2.1 Cost components of labour are identified and classified into categories 2.2 Average charge per hour for each identified category is calculated 2.3 Cost component of subcontractors used on jobs is determined and included in calculations for relevant jobs 2.4 Hourly labour rates are calculated according to workplace procedures |
3. Determine variable costs | 3.1 Variable costs are identified and calculated using data obtained from accounting records or supplier information 3.2 Required materials are estimated and recorded |
4. Determine retail price of products and services | 4.1 Previous sales figures and trends in turnover volume are reviewed 4.2 Competitors’ price for similar products or services is researched and reflected in final retail rate 4.3 Retail prices, margins and mark-ups for each product or service category are finalised according to workplace procedures |
This section specifies work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. Bold italicised wording, if used in the performance criteria, is detailed below.
Hourly labour ratesmustinclude: | provision for: fixed costs on costs. |
Previous sales figuresmust include: | wholesale cost of product or service retail price of product or service. |
Before competency can be determined, individuals must demonstrate they can perform the following according to the standards defined in this unit’s elements, performance criteria, range of conditions and foundation skills:
research and compare costs from external suppliers and competitors for:
two automotive workplace services
one consumable item
one automotive accessory product
calculate retail rates for above products and services.
Individuals must be able to demonstrate knowledge of:
basic accounting principles and practices relating to costings:
Goods and Services Tax (GST) calculations
mark-up, break even and profit calculations
simple and compound interest
inflation effects
straight line depreciation
factors impacting on pricing products and services:
overheads, including accommodation costs, utilities, depreciation, insurances, licences and other business charges
labour costs, including on costs covering leave provision, superannuation, training and workers’ compensation
actual employee chargeable hours
sources of information on prices and costs:
supplier or component price lists
accounting records
labour or payroll records
purchasing records
repair orders and job cards
standard repair and warranty times
key features of workplace software and technology relating to extracting and manipulating data and information.
Assessors must satisfy NVR/AQTF assessor requirements.
Competency is to be assessed in the workplace or a simulated environment that accurately reflects performance in a real workplace setting.
Assessment must include direct observation of tasks.
Where assessment of competency includes third-party evidence, individuals must provide evidence that links them to determining retail rates for automotive products and services, e.g. itemised calculation of retail rate.
Assessors must verify performance evidence through questioning on skills and knowledge to ensure correct interpretation and application.
The following resources must be made available:
automotive workplace or simulated workplace
range of information and data relating to product and service costs, including supplier price lists, workplace sales and service data, financial data and payroll records
calculator, computer hardware and software, and general office equipment.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist